Lilypad Hotels & Resorts

Paul Didriksen
 Problem
 Lilypad Hotels must determine whether they want to increase
their cross-sell rates or to sign new properties.
 Currently, Lilypad's cross-sell rate is 5%. The cross-sell rates
of their main competitors is between 10% and 15%.
 The company also must decide to either brand the hotels more
aggressively under the Lilypad name, or to keep their 12 hotels
autonomous in nature.
 Strengths
• Lilypad hotels offer exceptional travel experiences in 12 beautiful
and unique locations around the world, unparalleled by other
luxury hotels. 115,000 annual guests.

• The hotels and resorts are designed to feed the aspirations and
desires of the clientele.

– Architectural details, furnishings, culinary choices reflect local

culture and tastes

• Authentic regional hospitality is offered at each unique location.

• The Bayside, Maritime, and several others were featured in Travel

Magazine as some of the best hotels in the world.

• Entrepreneurial-minded hotel managers

 Weaknesses
•
Prospective and existing clientele are unaware of Lilypad’s corporate
brand, and possibly unaware of other Lilypad hotels and resorts around
the world.

Only 5% of the clientele visited other resorts or hotels.

Target market is not clearly defined, no sense of who their
customer is.
•
Lilypad’s hotels and resorts may not always be convenient for
business-minded travelers.

Lack of wireless internet access and other preferred amenities like
cable television, CNN, and a minibar.

Limited choices of food may not appeal to white-collar
professionals
 Opportunities
 Improve the annual occupancy (115,000 guest
visits) and cross-sell rate of existing units (1,500
rooms), which would promote value for future
business.
 Develop scaled efficiencies under the Lilypad brand.

– Order some supplies in bulk

 Acquire new properties, increasing the number of
units per sale.
 People who earn $500,000 annually travel globally
5-6 times per year.

- Having a positive Lilypad experience may result in

increased crossover rate, if customers know about
the other hotels.
 Threats
• International boutique and luxury Hotels and Resorts pose a threat
to Lilypad

• Examples include Four Seasons, Ritz-Carlton, Trump, Westin, etc.

– Cater high-end services to business professionals.

– Provide consistent and predictable customer experiences across all

hotels in a chain.

– Experience 10% - 15% annual crossover because of affiliation with

elite brand name.
 Marketing Strategy
 A 2011 survey suggests luxury hotel clientele prefer to be
entertained rather than pampered.
 Local tours and sightseeing
 Superior dining experiences
 Therefore, we suggest keeping the amenities of the hotel the same,
as well as keeping them individual and unique.
 Target leisure customers more than business travelers because they
align more with the current brand. A targeting of business travelers
would be ineffective and require a complete overall of the hotels'
offerings.
*
*
Lilypad
Bed & Breakfast Hotels
& Resorts

Economy
Luxury

* Trump

Towers
* Hampton
Inn

*
Ritz-Carlton

*Motel 6
 Promotion
 Create a strong internet presence
 Group individually-branded hotels under one website
 Example: Banana Republic
 Develop Rewards Program
 Tier system—Customers receive promotional discounts for
stays at other Lilypad destination hotels within the year
Example: If a customer stays in Dallas, then they would
receive 5% off their stay in London.
 10% off third destination, 15% off fourth
 Promotion discount capped at 15%
 Develops brand loyalty and exposes them to the
connection between the Lilypad-managed hotels
 Promotion Continued

Satisfied Clientele will assist with word of mouth advertising through
friends..

Travel Agencies
 Offer push money to travel agents that suggest Lilypad hotels
in desired locations to customers who have interest in
cultural experiences.
 Promote to our customers who frequent our other hotels.
 Product
Product Attributes Physical Psychological Values
Consequences Consequences

Individually 1,500 rooms Variety Feeling Independence

Branded Luxury In control of
Hotels decision
Personalized Comfort Feeling Pleasure
care pampered

Locally Authentic Feeling cultured Intellectual

influenced entertainment
cuisine and
architecture
Exotic locations Not “cookie- Feeling unique Adventure
worldwide cutter lux”
 Place
• The boutique and luxury hotel segment of the international
hotel/resort industry.

• Segmentation Strategy: Market Penetration

 Old Product, Old Market
 Focus on Promotion through internet and travel agencies
 Price
• The price of a Lilypad experience is relative to other
boutique/luxury hotels.

• Maintain current prices

• Increase in cross-sell of Lilypad hotels will increase profits

• Only price differences are offered with our Loyalty Program.

 Conclusion
Based on a market penetration strategy, it is
our suggestion that Lilypad Hotels and
Resorts focus on targeting leisure travelers.
By improving the company's website, working
with travel agents, and implementing a loyalty
program, we will educate both the travel
agent and the consumer about Lilypad's
unique hotels. This will increase the cross-
sell rate between hotels, resulting in an
increase in overall profit.
 References
• http://www.premiumcondohotels.com/pages/top-condo-hotel-
brands.php

• http://http://www.ihgplc.com/index.asp?pageid=53

• http://www.marketmetrix.com